When Wendy’s founder Dave Thomas was asked why his company’s burgers were square, he replied, “Because we never cut corners.” Thomas’ grandmother Minnie reportedly instilled this value in him, and his reply is a reminder that with some aspects of your business, you can’t afford to cut corners. Reducing effective marketing, customer service, employee benefits, and cybersecurity, or not nurturing your company’s core DNA, will cost you.
A study by marketing service OutboundEngine found that a staggering 50 percent of business owners admit to not having a marketing plan. It reports 55 percent of owners of small and medium-sized businesses (SMBs) spend less than 5 percent of annual revenue on marketing, and over 58 percent of SMB owners spent just five hours a week or less on marketing.
If the study is accurate, these companies are heading down a slippery slope. Keeping your company top-of-mind is fundamental to success and growth. Resources spent on strategic marketing is money you should get back with a healthy return.
Too often when times get tough, owners make ill-advised cuts to marketing/PR/ad budgets because they don’t understand the importance of these fundamental tools for stabilizing or growing a company. A business’ future viability requires not just cost controls, but revenue enhancement. Ill-advised slashing, or not putting in the time, effort or resources to successfully market your company will slowly deplete your business.
Remember not to under- or overspend, but work with your team to get your message out effectively.
Now, take a moment to consider the last time you reached out to a company and think about that customer service experience. Was it easy to find someone to handle your problem? Did the company resolve the matter quickly? If you’re a smart consumer and the answer was “no,” you likely moved on to another company to get that product/service.
Companies like Amazon and Lexus consistently rank as top customer service providers. Look to their efficiencies and strategies as a road map to your company’s customer service success. This is your front line of defense against bad-word-of-mouth and negative reviews online. Whether you’re building a culture of customer service, choosing the right vendor to handle inbound calls, or selecting digital customer service providers, in today’s era, with a negative review just a few clicks away, customer service is more important than ever.
Another area to support is your team, maybe your most important asset. If you hope to recruit and retain the top talent, potential and current employees need to know you’re willing to invest in them. Everything from company retreats, education, vacation time, and other benefits, matter.
Securing employee buy-in is directly correlated to how much you value your team, and how you treat your employees may ultimately affect how they deal with your clients and customers. If you have underappreciated employees, you’ll be faced with costly turnovers, problematic recruiting, or discover your employees are unwilling to deliver the level of service essential to your success. Little things matter when it comes to building esprit de corps. Don’t skimp here.
Underneath everything your company does, there should be a recognizable identity. Remember your mission and never forget your principles. You must know what your core DNA is, then you need to build and nurture that. And, if your company is growing, but its identity is being diluted, you have a problem. It’s time to regroup to ensure that the one good thing you are known for, is the one thing that never changes.
Finally, highly publicized trade secrets thefts and the Equifax and Capital One data breaches show there are malicious actors out there looking to target you next. Skimping on adequate cybersecurity measures to safeguard your customer data, trade secrets and intellectual property will end up costing you customers, while saddling your outfit with financial liability and huge image problems. All this can mean the death of your business.
Every company owner is faced with the task that only ends when the business ends: Ensuring that your operation is lean and efficient. But as you’re trimming costs, remember not to be pennywise and pound-foolish. There are certain things your business just can’t afford to do without.
James S. Cassel is co-founder and chairman of Cassel Salpeter & Co. email@example.com . www.casselsalpeter.com